MANAGERIAL ACCOUNTING FOR MANAGERS, ACCURATAELY
ANSWERED BY ERIC NOREEN
1.Managerial accounting - ANSWER A field of accounting that provides economic and financial
information for managers and other internal users.
2.Activity-based costing (ABC) - ANSWER A method of allocating overhead based on each
product's use of activities in making the product.
3.Balanced scorecard - ANSWER A performance-measurement approach that uses both financial
and nonfinancial measures, tied to company objectives, to evaluate a company's operations in
an integrated fashion.
4.Board of directors - ANSWER The group of officials elected by the stockholders of a
corporation to formulate operating policies and select officers who will manage the company.
5.Management Functions in Managerial Accounting - ANSWER Planning.
Directing.
Controlling
6.Chief executive officer (CEO) - ANSWER Corporate officer who has overall responsibility for
managing the business and delegates responsibilities to other corporate officers.
7.Chief financial officer (CFO) - ANSWER Corporate officer who is responsible for all of the
accounting and finance issues of the company.
8.Controller - ANSWER Financial officer responsible for a company's accounting records, system
of internal control, and preparation of financial statements, tax returns, and internal reports.
,9.Corporate social responsibility - ANSWER The efforts of a company to employ sustainable
business practices with regard to its employees, society, and the environment.
10.Cost of goods manufactured - ANSWER Total cost of work in process less the cost of the
ending work in process inventory.
11.Direct labor - ANSWER The work of factory employees that can be physically and directly
associated with converting raw materials into finished goods.
12.Direct materials - ANSWER Raw materials that can be physically and directly associated with
manufacturing the finished product.
13.Enterprise resource planning (ERP) system - ANSWER Software that provides a
comprehensive, centralized, integrated source of information used to manage all major business
processes.
14.Indirect labor - ANSWER Work of factory employees that has no physical association with the
finished product or for which it is impractical to trace the costs to the goods produced.
15.Indirect materials - ANSWER Raw materials that do not physically become part of the
finished product or for which it is impractical to trace to the finished product because their
physical association with the finished product is too small.
16.Just-in-time (JIT) inventory - ANSWER Inventory system in which goods are manufactured or
purchased just in time for sale.
17.Line positions - ANSWER Jobs that are directly involved in a company's primary revenue-
generating operating activities.
18.Managerial accounting - ANSWER A field of accounting that provides economic and financial
information for managers and other internal users.
, 19.Manufacturing overhead - ANSWER Manufacturing costs that are indirectly associated with
the manufacture of the finished product.
20.Period costs - ANSWER Costs that are matched with the revenue of a specific time period
and charged to expense as incurred.
21.Product costs - ANSWER Costs that are a necessary and integral part of producing the
finished product.
22.Sarbanes-Oxley Act (SOX) - ANSWER Law passed by Congress intended to reduce unethical
corporate behavior.
23.Staff positions - ANSWER Jobs that support the efforts of line employees.
24.Theory of constraints - ANSWER A specific approach used to identify and manage constraints
in order to achieve the company's goals.
25.Total cost of work in process - ANSWER Cost of the beginning work in process plus total
manufacturing costs for the current period.
26.Total manufacturing costs - ANSWER The sum of direct materials, direct labor, and
manufacturing overhead incurred in the current period.
27.Total quality management (TQM) - ANSWER Systems implemented to reduce defects in
finished products with the goal of achieving zero defects.
28.Treasurer - ANSWER Financial officer responsible for custody of a company's funds and for
maintaining its cash position.
ANSWERED BY ERIC NOREEN
1.Managerial accounting - ANSWER A field of accounting that provides economic and financial
information for managers and other internal users.
2.Activity-based costing (ABC) - ANSWER A method of allocating overhead based on each
product's use of activities in making the product.
3.Balanced scorecard - ANSWER A performance-measurement approach that uses both financial
and nonfinancial measures, tied to company objectives, to evaluate a company's operations in
an integrated fashion.
4.Board of directors - ANSWER The group of officials elected by the stockholders of a
corporation to formulate operating policies and select officers who will manage the company.
5.Management Functions in Managerial Accounting - ANSWER Planning.
Directing.
Controlling
6.Chief executive officer (CEO) - ANSWER Corporate officer who has overall responsibility for
managing the business and delegates responsibilities to other corporate officers.
7.Chief financial officer (CFO) - ANSWER Corporate officer who is responsible for all of the
accounting and finance issues of the company.
8.Controller - ANSWER Financial officer responsible for a company's accounting records, system
of internal control, and preparation of financial statements, tax returns, and internal reports.
,9.Corporate social responsibility - ANSWER The efforts of a company to employ sustainable
business practices with regard to its employees, society, and the environment.
10.Cost of goods manufactured - ANSWER Total cost of work in process less the cost of the
ending work in process inventory.
11.Direct labor - ANSWER The work of factory employees that can be physically and directly
associated with converting raw materials into finished goods.
12.Direct materials - ANSWER Raw materials that can be physically and directly associated with
manufacturing the finished product.
13.Enterprise resource planning (ERP) system - ANSWER Software that provides a
comprehensive, centralized, integrated source of information used to manage all major business
processes.
14.Indirect labor - ANSWER Work of factory employees that has no physical association with the
finished product or for which it is impractical to trace the costs to the goods produced.
15.Indirect materials - ANSWER Raw materials that do not physically become part of the
finished product or for which it is impractical to trace to the finished product because their
physical association with the finished product is too small.
16.Just-in-time (JIT) inventory - ANSWER Inventory system in which goods are manufactured or
purchased just in time for sale.
17.Line positions - ANSWER Jobs that are directly involved in a company's primary revenue-
generating operating activities.
18.Managerial accounting - ANSWER A field of accounting that provides economic and financial
information for managers and other internal users.
, 19.Manufacturing overhead - ANSWER Manufacturing costs that are indirectly associated with
the manufacture of the finished product.
20.Period costs - ANSWER Costs that are matched with the revenue of a specific time period
and charged to expense as incurred.
21.Product costs - ANSWER Costs that are a necessary and integral part of producing the
finished product.
22.Sarbanes-Oxley Act (SOX) - ANSWER Law passed by Congress intended to reduce unethical
corporate behavior.
23.Staff positions - ANSWER Jobs that support the efforts of line employees.
24.Theory of constraints - ANSWER A specific approach used to identify and manage constraints
in order to achieve the company's goals.
25.Total cost of work in process - ANSWER Cost of the beginning work in process plus total
manufacturing costs for the current period.
26.Total manufacturing costs - ANSWER The sum of direct materials, direct labor, and
manufacturing overhead incurred in the current period.
27.Total quality management (TQM) - ANSWER Systems implemented to reduce defects in
finished products with the goal of achieving zero defects.
28.Treasurer - ANSWER Financial officer responsible for custody of a company's funds and for
maintaining its cash position.
